Hyperliquid

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Hyperliquid
Image: official site logo (hyperliquid.xyz)
type	perpetuals exchange, own layer 1
launched	2023 (closed alpha February 2023)
token	HYPE (genesis November 29, 2024)
founders	Jeff Yan, iliensinc
website	hyperliquid.xyz

Hyperliquid is a decentralized perpetual futures exchange on its own layer 1 blockchain, whose HYPE token and aggressive fee funded buybacks made it the reference point for every revenue debate on Crypto Twitter.

Contents

1 Function
2 HYPE
3 The JELLY squeeze
4 Use in the trenches
5 References

Function

Hyperliquid is a decentralized exchange for perpetual futures that runs on a purpose built layer 1 blockchain, keeping a full central limit order book, matching engine, and settlement onchain at speeds comparable to a centralized exchange. It was founded by Jeff Yan, a Harvard mathematics and computer science graduate and former Hudson River Trading quant, with a pseudonymous cofounder known as iliensinc. The team, reported at around 11 people, took no venture funding. The chain has two layers: HyperCore, which runs the exchange itself, and HyperEVM, an EVM compatible smart contract environment opened in February 2025. HLP, the Hyperliquidity Provider vault, is a community deposit vault that market makes on the exchange and absorbs liquidated positions, sharing its profit and loss with depositors.

HYPE

The HYPE token launched on November 29, 2024 with one of the largest airdrops in crypto history: about 310 million tokens, 31 percent of supply, went to past users, with nothing allocated to private investors or market makers. Value accrual runs through the Assistance Fund, which uses roughly 97 percent of protocol trading fees to buy HYPE on the open market. By May 2026 the fund had spent over 1.3 billion dollars and held about 14 percent of circulating supply. Hyperliquid generated roughly 857 million dollars in fees in 2025 and ran near 1.3 billion dollars annualized by mid 2026. HYPE peaked at 59.33 dollars in September 2025, then printed a new record near 77 dollars on June 16, 2026, a rare all time high in an otherwise bearish year.

The JELLY squeeze

On March 26, 2025 a trader weaponized the memecoin Jelly My Jelly against the exchange, abandoning a large short that HLP was forced to inherit while allied wallets pumped the spot price, putting the vault into an unrealized loss around 13.5 million dollars. Validators voted to delist the JELLYJELLY perpetual and force settled it at 0.0095 dollars, converting the loss into a small profit and refunding users except flagged addresses. The episode remains the standard case study in both the resilience and the centralization critiques of the platform.

Use in the trenches

Hyperliquid is where the trenches go to short or leverage the same tickers they trade on Solana, and terminals such as Axiom embed its perps directly. In July 2026 Ansem used it as the anchor of a viral thesis that buybacks do not drive valuations, noting Hyperliquid earned about 800 million dollars annualized against 440 million for pump.fun, yet HYPE traded at a 65 billion dollar FDV while PUMP sat near 1.4 billion, attributing the gap to a trust premium. As of August 2026 Hyperliquid remains the dominant onchain perps venue, with US ETF filings around HYPE under discussion.

Hyperliquid

Function

HYPE

The JELLY squeeze

Use in the trenches

References